Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — FY2015 Earnings Presentation
27 slides from Omni Bridgeway's earnings presentation, August 2015
Slide 1: FY2015 Full Year Results Investor Presentation
FY2015 Full Year Results AUGUST 2015 Investor Presentation
Slide 2: Results Overview
RESULTS OVERVIEW After a strong first half, the second half of FY2015 was impacted by four losses, one of which is on appeal: The Bank Fees case in Australia, which is being appealed, impact of $5.5M; The National Potato case in South Africa, impact of $18.5M (investment of $4.9M); The Desal
Slide 3: FY2015 Highlights
FY2015 HIGHLIGHTS FY2014 FY2015 % Gross Income (from cases) $75 9M $75.9M $92 3M $92.3M 22% Net Income (from cases) $25.3M $14.6M 42% NPBT $15.6M $9.2M 41% NPAT $9.9M $6.3M 36% Dividends (cents per share) 10 cents 10 cents ‐ EPS 6.56 3.78 42% Net Asset Backing $1.16 $1.11 4% Net Cash $57
Slide 4: Historical NPAT and Portfolio Value
HISTORICAL NPAT AND PORTFOLIO VALUE IMF Bentham NPAT & Portfolio Value 2008 to 2015 $50 M $2 50 B $2.50 $45 M $40 M $2.0 B ortfolio Value $35 M NPAT $30 M $1.50 B Po $25 M $20 M $1.0 B NPAT $15 M $10 M $0.50 B NPAT Average $5 M IMF Portfolio att 30 JJune $M $0.0 B 2008 2009 2010 2011 2012 2013 2014
Slide 5: Funding Track Record
FUNDING TRACK RECORD IMF’s track record to 30 June 2015 S ttl Settlements t Summary 175 cases commenced and completed since Won listing. ROI off 158% 158%. Average investment period of 2.4 years. 13 Generated revenue of $1.63B: 117 175 Cases $1037M to Clients (64%); Completed $591M to IM
Slide 6: Balance Sheet Strength
BALANCE SHEET STRENGTH Cash Investments1 Net Assets $M $M $M $130.11 $98.64 $99.48 2 $105.57 $191.13 $185.90 $86.13 $66.00 $67.98 $59.63 $125.50 $62.40 $111.70 $55 01 $55.01 $87.19 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 1 Investments includes capitalised overheads
Slide 7: Investment Portfolio at 30 June 2015
INVESTMENT PORTFOLIO AT 30 JUNE 2015 IMF expects to generate average gross revenue of 15% of the portfolio value over 3 years. % of Possible Possible Possible Est. Claim No of Claim l i Value l Range Totall Completion l i Completion l i Completion l i Value1 Cases Value FY20162 FY20172 FY20182 <$10M
Slide 8: Possible Completions in FY2016
POSSIBLE COMPLETIONS IN FY2016 Below is a list of matters that may complete in FY2016. Other matters may also complete in that period. Matter p Description Bank Fees On 4 February 2014 Justice Gordon delivered judgment in the ANZ Bank Fees matter. The findings in favour of IMF's clients were tha
Slide 9: Growth Strategy and Competitive Strengths
GROWTH STRATEGY AND COMPETITVE STRENGTHS IMF has identified significant opportunities for growth and diversification. Item Opportunity Major growth opportunities Renewed focus on the insolvency market with new products. onshore Additional products being developed to be launched in FY2016. Leve
Slide 10: Target for Funding New Cases
TARGET FOR FUNDING NEW CASES Target set for 2016 to 2018 as follows: DESCRIPTION 2014 2015 2016 2017 2018 Cases funded 8 21 37 54 61 Funds committed $42M $54M $86M $107M $123M ((A$M)) 21 new cases were funded in FY2015 which committed funds of $54M. Diversification achieved in 2015 from a larger
Slide 11: Australian Business
AUSTRALIAN BUSINESS IMF commenced operations as a listed company in 2001. Item Description Australian footprint Offices in all mainland capital cities. 12 Investment Managers located throughout the country with capacity to manage local relationships. Investment managers and associate investmen
Slide 12: US Business
US BUSINESS IMF commenced its geographical diversification strategy in 2011 with its first international office in New York. Item Description Expanded footprint in US Opened O d it its first fi t office ffi ini N New YYorkk iin A Augustt 2011 2011. Offices subsequently opened in Los Angeles in S
Slide 13: European Joint Venture
EUROPEAN JOINT VENTURE IMF expanded to its third international presence with the opening of its joint venture office in March 2014. Item Description Expanded footprint in Europe Opened its first f office ff in London in Marchh 2014. Subsequently opened its second office in Amsterdam in October 2
Slide 14: Consistent Risk Management
CONSISTENT RISK MANAGEMENT Risk management process includes: Case selection; Investment Committee review; and Case Management. Case selection must meet minimum legal and factual criteria before recommendation to the Investment Committee. Rigorous Investment Committee process to challenge
Slide 15: Lost Cases
LOST CASES IMF has only lost 10 cases since listing in 2001 (6%), as follows: Name of Case: Investment Initial Court Appeal P&L Impact Time from ID Investment Loss Decision Decision Decision Year to P&L ( (including g Impact adverse costs) (Years) $ Essington FY2004 N/A FY2005 FY2005 2 $0.1M Marmint
Slide 16: Outlook
OUTLOOK After a strong first half, the second half of FY2015 was impacted by four losses. IMF has significant earnings power and has delivered 158% ROI since listing. New strategic phase of growth, international expansion, diversification and capital management. Further development of intern
Slide 17: Appendices
APPENDICES Overview of IMF Bentham Limited What is Litigation Funding? The IMF Litigation Funding Process FY2015 Income Hi Historical i lR Results l byb H Half lf YYear Cash Flow History Dividend Historyy Litigation Funding Market IMF’s Competitors Key Risks 17
Slide 18: Overview of IMF Bentham Limited
OVERVIEW OF IMF BENTHAM LIMITED IMF is the world’s most experienced litigation funder. With a return on investment delivered of 158% since listing, IMF is entering a new strategic phase of growth, international expansion, diversification and capital management. IMF Fast Facts Detail The world’s most
Slide 19: What is Litigation Funding?
WHAT IS LITIGATION FUNDING? As a “litigation funder” IMF provides funding on a contingency basis to businesses and individuals with claims for loss and damage. IMF provides funding for the client’s case or to the client and, in jurisdictions where adverse costs are relevant, agrees g to p payy a
Slide 20: The IMF Litigation Funding Process
THE IMF LITIGATION FUNDING PROCESS 1. OUTLINE OF CLAIM 2. APPLICATION REVIEW 3. OFFER OF FUNDING The investing process generally begins IMF evaluates opportunities by The IMF Investment Committee receives with the execution of a confidentiality assessing a number of factors, including a due diligenc
Slide 21: FY2015 Income
FY2015 INCOME MATTER PORTFOLIO GROSS INCOME NET INCOME ROI VALUE (Excluding overheads) h d) Premium Income Fund $75M $18.3M $7.7M USA Case 003 $65M $17.3M $11.3M USA Case 008 $100M $16.1M $7.6M ABC Learning (2 cases) $150M $16.7M $5.1M Confidential Aust. Matter $25M $2.4M $1.7M Peninsula Colour Grap
Slide 22: Historical Results by Half Year
HISTORICAL RESULTS BY HALF YEAR 1HFY13 2HFY13 1HFY14 2HFY14 1HFY15 2HFY15 Gross Income $ $20.6M $ $23.3M $ $33.6M $ $42.3M $ $77.6M $ $14.7M (from cases) Net Income $11.5M $13.1M $17.7M $7.6M $37.7M ($23.1M) (from cases) NPBT $8.7M $11.4M $13.6M $2M $32.5M ($23.3M) NPAT $5.6M $8.2M $9.1M $0.8M $23.0
Slide 23: Cash Flow History
CASH FLOW HISTORY 30‐Jun‐13 30‐Jun‐14 30‐Jun‐15 $M $M $M Payments to suppliers and employees (8,095) (6,751) (15,807) Income tax paid (18,183) (1,502) (7,037) Other (527) (526) (85) Net cash flows (used in) operating activities (26,805) (8,779) (22,929) Net proceeds/(payments) from litigation fundin
Slide 24: Dividend History
DIVIDEND HISTORY Dividend History of the last 5 years Dividend Policy DATE CENTS PER The Directors have determined they will SHARE consider, and where appropriate FY2011 15 Fully franked implement, a regular semi‐annual dividend which reflects the cash position of the FY2012 10 Fully franked Compa
Slide 25: Litigation Funding Market
LITIGATION FUNDING MARKET There is currently no direct empirical data available on the size of the litigation funding market in any market IMF operates in. Th following The f ll i estimates ti t h have b been calculated l l t d by b reference f to t third thi d partyt researchh reports, t courtt
Slide 26: IMF's Competitors
IMF’S COMPETITORS In Australia it is estimated that IMF has 69% of the litigation funding market. (ref : IBIS 2014) The key industry participants in the markets in which IMF operates include: Australia US Europe JKL/Longford Capital Burford Harbour Litigation Lending Services GKC Vannin Capital Li
Slide 27: Key Risks
KEY RISKS Item Description Choosing, and remaining in, a If a funded case is lost, IMF will lose not only its investment but may also have to pay the defendant’s funded case that is ultimately costs. lost Reliance on key management IMF depends substantially on its executive directors, senior man